Which of the following is true of an improvement in technology?
A) An improvement in technology shifts the per-worker production function upward.
B) An improvement in technology shifts the per-worker production function downward.
C) An improvement in technology increases the concavity of the production possibilities frontier.
D) An improvement in technology decreases the concavity of the production possibilities frontier.
E) An improvement in technology increases the quantity of input in the production process.

Question

Quizplus · Accepted Answer

An improvement in technology means that the same inputs can produce more output, which shifts the per-worker production function upward. This is because more output can be produced with the same amount of input, increasing productivity.

Which of the Following Is True of an Improvement in Technology